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1.) Draw a neoclassical graph of a country in autarky equilibrium. Label the graph carefully, and...

1.) Draw a neoclassical graph of a country in autarky equilibrium. Label the graph carefully, and label the autarky equilibrium point E. Suppose the international relative price of the good on the Y-axis is lower than the country’s autarky relative price (that is, (PY/PX)Aut > (PY/PX)Int. Draw the international price line on your graph. Label the new trade production point F, and the new trade consumption point C. Which good will this country import?

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